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JAMIE Jurgens believes he could find himself in a position where it could be "risky to plant a crop", if the Federal Government's proposed tax hike on backpackers goes ahead.

The Veejay's Tomatoes owner said plans to tax backpackers 32.5% of their income from July could make working on his Bowen farm unattractive to the 60-70 backpackers he relies on each harvest season.

Currently, backpackers can claim the $18,200 tax free threshold and are taxed 19% of every dollar earned between $18,201-$37,000.

"This tax would certainly limit the ability of us in the bush to be able to get workers," Mr Jurgens said.

"I don't think there's any person in agriculture who doesn't think if you're in Australia using Australian resources you should be paying some tax. They shouldn't be claiming the tax free threshold.

"But taking (more than) 30%? It's too much.

"The word will get out on the internet and they (backpackers) won't come."

However Barnacles Backpackers owner John Toohey thought increasing backpacker tax would result in the tighter regulation of an industry he believed was notorious for underhand operations, particularly from labour-hire contractors.

"Instead of people working for 10 hours and getting paid $30 for the day, they will get paid the right amount," Mr Toohey said.

"People are jumping up and down saying we won't get the workers but, if they're treating them properly and paying them properly, they will.

"Most backpackers won't care (about the tax increase) because wages are so poor in other countries."

He believed travellers determined to make the second year VISA requirement, which required 88 days of work in a regional area, would still fill work on farms.

Federal Member for Dawson George Christensen said it was the people most likely to be exploited who would be deterred by the tax.

"People (backpackers) who are genuinely coming for a holiday and want to work to supplement their money will still come," Mr Christensen said.

"The people coming just for the money, those are the people this will deter. Those are also the people most susceptible to being exploited."

He added, even if backpackers were no longer prepared to work due to the tax hikes, it would give Australian workers more employment opportunities.